A SOUND POLICY.
Tilt' directors of the Bank of London and South America pre to be congratulated upon their decision to write off and eliminate from their accounts the depreciation that has existed for some years in the value of the bank's capital employed in foreign currencies. This is a policy which, it will be remembered, was recently adopted by the Anglo- South American Bank and one which obtained general approval in the Press. In most, if not all, of the countries concerned, efforts have now been made, with considerable success, to bring about greater currency stability, thus making possible the process of adjustment of bank capital. In the case of the Bank of London and South America the latest balance sheet shows that t he item of depreciation has been wholly eliminated from the accounts, and although £600,000 has been taken from the Reserve, that Fund is still left at no less than £3.000,000, or not far from the amount of the entire 'capital of the bank. The balance sheet, is, therefore, now entirely free from all qualifying notes. At the annual meeting held this week one of the directors, Mr. Middleton, presided, in the absence of the Chairman, and gave a most excellent and exhaustive account of economic conditions in South America, commenting upon the prosperity of Argentina and the improved credit of Brazil resulting from the recent resump- tion of sinking fund arrangements.
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